Ripple’s XRP price has soared 96% in the last day, increasing the most among the biggest cryptocurrencies by market capitalization, Following a U.S. judge’s decision that the selling of XRP tokens on exchanges does not constitute the formation of investment contracts.
XRP increased to its highest point since March 2022, 93.8 cents, according to statistics from CryptoWatch, before falling to 81 cents at the moment of publishing.
XRP is not a security
Price movement followed the Southern District of New York District Court’s ruling that the “offer and sale of XRP on digital asset exchanges did not amount to offers and sales of investment contracts,” as “the record cannot establish the third Howey prong to these transactions.”
Moreover, A court decision indicating that XRP is not a security—rekindled the ecosystem’s long-dormant excitement. As the cryptocurrency surged, Ripple’s chief technical officer David Schwartz issued a caution to investors, anticipating an inflow of scams.
On July 13, the United States District Court for the Southern District of New York partially resolved a two-year legal dispute between Ripple and the United States Securities and Exchange Commission by removing the “security” designation from its XRP cryptocurrency.
Crypto fraud at peak after XRP jump
Crypto fraudsters become quite active when there is a buzz about cryptocurrencies other crypto ecosystems like non fungible tokens (NFTs), aiming to con naive investors. Schwartz tweeted a warning about the growing XRP scams.
The Ripple case is likewise far from over; it will eventually have its own trial date. Therefore, despite the fact that cryptocurrency values are surging everywhere, there are enough unknowns to give the sector reason for anxiety. Bloomberg reports.